WORLD TRADE  
ORGANIZATION  G/SG/N/7/MDA/1 
G/SG/N/11/MDA/2 18 January 2005 
 
(05-0203) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON 
SAFEGUARDS BEFORE TAKING A PROVISIONAL SAFEGUARD  
MEASURE REFERRED TO IN ARTICLE 6 
 
NOTIFICATION PURSUANT TO ARTICLE 9,  
FOOTNOTE 2, OF THE AGREEMENT ON SAFEGUARDS 
 
MOLDOVA 
  
 The following communication, dated 14 January 2005,  is being circulated at the request of the 
Delegation of Moldova.  
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 Pursuant to Article 12.4 and Article 9, footnot e 2, of the Agreement on Safeguards, I have the 
honor to present the notifications on taking provisio nal safeguard measures to the import of certain 
cosmetic and perfumery products. G/SG/N/7/MDA/1 
G/SG/N/11/MDA/2 Page 2 
 
 
A. NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON SAFEGUARDS 
ON TAKING A PROVISIONAL SAFEGUARD MEASURE REFERRED TO IN ARTICLE 6 
 As indicated in the notification of the Republic of Moldova contained in the document 
G/SG/N/6/MDA/2 , the Investigation Authority of the Repub lic of Moldova decided to initiate the 
investigation on imports of cosmetics and perfu mery products on 18 June 2004 as follows: 
  1.  330300100 - perfumery; 
 2.  330300900 - toilet waters; 
 3.  330499000 - others;  4.  330510000 – shampoos and preparations to use on the hair;  5.  330610000 - dentifrice; 
6.  3307 - Pre-shave, shaving or after-sha ve preparations, pers onal deodorants, bath 
preparations, depilatories and other perfumery, co smetic or toilet preparations, not elsewhere 
specified or included;  prepared room deodorisers. 
 Based on the preliminary results of the investigatio n, the Investigation Authority of the Republic of 
Moldova wishes to notify that it proposes to apply a provisional safeguard measure on imports of the 
following products: 
 
 1.  330300900 - toilet waters;  and,  2.  330510000 – shampoos and preparations to use on the hair.  
I. PROPOSED MEASURE 
A special safeguard duty on specified products in the amount of: 
 
- 15 per cent of the custom value of imported products from the tariff classification 
330300900 – toilet waters. The a bove mentioned safeguard dut y will be applied only to 
imported products which customs value will not exceed 60 USD/litre. 
- 20 per cent of the customs value of imported products from the tariff classification 
330510000 – shampoos and preparations to use on  the hair. The above mentioned safeguard 
tax will be applied only to imported produc ts which customs value will not exceed 
2,5 USD/litre.  
II. DATE OF ENTRY INTO FORCE 
The proposed measure will come in to force in 30 days after the r espective law being published in the 
official newspaper “Monitorul Oficial al Republicii Moldova”. 
  
III. DURATION OF THE MEASURE 
The duration of the proposed provisional measure is 200 days from entry into force. 
  The proposed provisional measure was approved by  the Government of the Republic of Moldova 
Decision no. 1434 on 23 December 2004 and was transf erred to the Parliament for adoption.   
  G/SG/N/7/MDA/1 
 G/SG/N/11/MDA/2 
 Page 3 
 
 
IV. VOLUME OF IMPORTS 
1. The imports volume of toilet waters increas ed during the 2000 – 2003 period to 2.25 times 
from 101.1 tonnes in 2000 to 227.6 tonnes in 2003. In currency units this imports increased to 3.97 times from 429.9 thousand USD in 2000 to 1707 thousand USD in 2003. 
 
2. The volume of imports of shampoos and preparations for use on the hair increased during the 
2000 – 2003 period with 42.1 per cent from 973.1 tonnes in 2000 to 1383 tonnes in 2003. In currency units this products imports increas ed for 4.0 times from 498.8 thousand USD in 
2000 to 1997.7 thousand USD in 2003 
 
V. EVIDENCE OF A THREAT OF A SERIOUS INJURY CAUSED BY INCREASED 
IMPORTS TO DOMESTIC INDUSTRY 
1. PRODUCTION 
  
a) Production of the toilet waters (tariff positi on 330300900) increased during the investigation 
period from 23.9 tonnes in 2000 to 138.1 tonnes in 2003.  
b) Production of the shampoos (tariff position 330510000) decreased by 5.4 per cent, from 
489.6 tonnes in 2000 to 463 tonnes in 2003. 
  2. CAPACITY UTILIZATION 
  
a) The average capacity utilization of the toilet wa ters production units decreased from 28.5 per cent 
in 2001 to 24.97 per cent in 2003. 
b) The average capacity utilization of the shampoos production units decreased from 41.7 per cent in 
2001 to 14.5 per cent in 2003. 
 
3. SALES  a) The sales of the toilet waters (tariff position 330 300900) increased during the 2001 – 2003 period 
from 26.4 tonnes to 81.4 tonnes, which means that  the quantity of sold products increased to 
3,1 times. In currency units this increase repres ents a rise of sales from 483.1 thousand USD in 
2001 to 525.7 thousand USD in 2003, which means an increase by 8.8 per cent. 
b) The sales of shampoos (tariff position 330510000) s lightly increased in the quantitative units from 
440.6 tonnes in 2001 to 463.5 tonnes in 2003. But, in the currency units the sales of this products decreased by 6.9 per cent from 498.9 thousand USD in 2001 to 464.4 thousands USD in 2003. 
 
4. PROFITS 
 The net profits of the domestic company continuous ly decreased during the investigation period from 
304,9 thousands USD in 2000 to 37.8 thousands USD in 2003. The net profits declined to 8.1 times during the 2000 – 2003 period.  
5. EMPLOYMENT 
 The number of employees decreased during the 2000 - 2003 period by 19.7 per cent, from 310 in 2000 to 241 in 2003.   VI. CAUSAL LINK 
 The Investigation Authority of the Republic of Moldova considers that it is possible to make a 
preliminary determination of causal link between the significant real and estimated increase in imports G/SG/N/7/MDA/1 
G/SG/N/11/MDA/2 Page 4 
 
 of the products under investigation and the threat of  serious injury to the domestic industry, on the 
following grounds:  the significant increase in the impor ts at issue during the period of investigation;  
the expected much larger increase in these imports  as a result of the liberalization of the domestic 
market;  and the little relevance or irrelevance of f actors other than the imports in question, such as 
the inexistence of a source of domestic competition, other than the imports, that may adversely affect 
the applicant enterprise, the projected evolution of  the domestic market in the period covered by the 
prospective analysis and the projected evolution of exports, in relation to the imminent deterioration 
of the domestic industry producing like goods.  VII. BASES FOR DETERMINING THE EXISTEN CE OF CRITICAL CIRCUMSTANCES 
WHERE DELAY WOULD CAUSE DAMAGE WHICH WOULD BE DIFFICULT TO REPAIR 
 The Investigation Authority of the Republic of Moldova found out that according to the 
information analysed in the first instance, critical  circumstances are present in which any delay in 
introducing the provisional safeguard measure would cause damage for the domestic industry, which 
would be difficult to repair.  This conclusion re flects the adverse impact, which the imports would 
have on, for example, producer prices, market shar e, production and inventory levels.  As a result, 
producers would support financial losses, which would be impossible to recoup. 
 
B. NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2, OF THE 
AGREEMENT ON SAFEGUARDS 
 
I. DEVELOPING COUNTRIES TO WHICH THE MEASURE DOES NOT APPLY 
PURSUANT TO ARTICLE 9.1 OF THE AGREEMENT ON SAFEGUARDS, AND THE IMPORT SHARES OF THESE COUNTRIES INDIVIDUALLY AND 
COLLECTIVELY 
 The list of developing countries to which the measure does not apply is attached to this 
notification.   
II. CHANGE IN THE LIST OF DEVELOPI NG COUNTRIES EXEMPTED FROM THE 
SAFEGUARD MEASURE PURSUANT TO ARTICLE 9.1 
 Not applicable.  G/SG/N/7/MDA/1 
 G/SG/N/11/MDA/2 
 Page 5 
 
 
ANNEX 
 
List of developing countries exempted from the application of this measure 
      
Albania Guatemala Pakistan 
Angola Guyana Panama Antigua and Barbuda Guinea Papua New Guinea Argentina Guinea-Bissau Paraguay Bahrain Haiti Peru 
Bangladesh Honduras Philippines 
Barbados Chile Qatar Belize India Romania Benin Indonesia Rwanda Bolivia Jamaica Saint Kitts and Nevis Botswana Jordan Saint Lucia 
Brunei Darussalam Kenya Saint Vincent and the Grenadines 
Burkina Faso Kuwait Senegal Burundi Kyrgyz Republic Sierra Leone Cameroon Lesotho Solomon Islands Central African Republic Madagascar South Africa 
Colombia Malawi Sri Lanka 
Congo Malaysia Suriname Costa Rica Maldives Swaziland Côte d’Ivoire Mali Tanzania Croatia Malta Thailand 
Cyprus Mauritania The Gambia 
Democratic Republic of Congo Mauritius Togo Djibouti Mexico Trinidad and Tobago Dominica Mongolia Tunisia Dominican Republic Morocco United Arab Emirates Ecuador Mozambique Uganda 
Egypt Myanmar Uruguay 
El Salvador Namibia Venezuela Fiji Niger Zambia Gabon Nigeria Zimbabwe Ghana Nicaragua   
Grenada Oman   
 
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